Ayo Technology Solutions, the company indirectly controlled by Iqbal Survé, has filed an urgent high court application to stop FNB from terminating its transaction banking facilities, Ayo said on Thursday evening.
Earlier in the evening, the company had informed shareholders in a statement issued after the market closed that the bank intended to sever ties with the company with effect from May 3. In the same statement, Ayo said it did not have any lending facility with FNB.
Ayo said it had instituted legal proceedings against FNB as the bank had not provided it with “valid reasons” for the move.
In another statement, the company said it had launched the high court bid to interdict the bank.
“FNB provided no reasons for its decision terminate its banking relationship with Ayo, notwithstanding Ayo's requests for it to do so. This has left Ayo with no choice but to apply for an urgent interdict against FNB. Ayo believes that FNB's decision is both unlawful and unconstitutional,” Ayo said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.